The company that owns British Gas will come under fire as it unveils annual
profits of almost £2.5 billion at a time when domestic energy bills have
risen by around £230 per household.

Centrica, which owns oil and gas fields around the world as well as being the UK’s largest household energy supplier, is expected to report annual operating profits of £2.48 billion, an increase of £93 million on last year.

The profit comes as consumers are struggling to cope with rising household energy bills, which have increased by an average of 22 per cent over the last year.

According to website Uswitch.com, the average dual fuel household energy bill in the UK now stands at £1,260, around £230 more than last year.

Heat campaigners said that millions of families are being pushed into fuel poverty by high gas and electricity prices.

“Fuel poverty and financial exclusion is becoming a major issue in the UK. Millions of consumers are paying more than is necessary for their energy,” said Danny Jatania, chief executive of Pockit, a consumer payment company.

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Although Centrica’s overall earnings will rise, profits at the British Gas division of the company are expected to fall.

City analysts expect profits at British Gas Residential, which supplies domestic energy to around 16 million account holders, to fall by a quarter to around £550 million, the lowest amount for three years.

The fall comes despite British Gas raising its fuel prices by around 15 per cent last year. It cut its electricity prices by 5 per cent last month.

The decline in profits in the household division was caused by households consuming less energy in 2011 compared to 2010 and by rising prices on the energy wholesale market – from which British Gas buys its energy. The division was loss-making between April and August last year, when it raised its prices.